HP Inc. (NYSE:HPQ) Surpasses Earnings Estimates

Core Insights - HP Inc. reported an earnings per share (EPS) of $0.93, exceeding the estimated $0.91, indicating strong performance in the technology sector [1][6] - The company's revenue for the quarter ending in October 2025 was $14.64 billion, a 4.2% increase from the previous year, but fell short of the Zacks Consensus Estimate of $14.97 billion, resulting in a revenue surprise of -2.23% [2][6] Financial Performance - HPQ's EPS matched the previous year's figure, delivering a positive surprise of 2.2% against consensus estimates, marking the only time in the past four quarters that it exceeded consensus EPS estimates [3] - The company's price-to-earnings (P/E) ratio is approximately 9.02, indicating how the market values its earnings [4][6] - HPQ's revenue increase of 4.2% year-over-year reflects its competitive position in the market despite the revenue shortfall against estimates [2][6] Market Valuation - The price-to-sales ratio stands at 0.41, suggesting a relatively low market valuation compared to its revenue [4] - The enterprise value to sales ratio is 0.52, slightly higher than its market capitalization, reflecting the company's overall valuation including debt [4] Financial Health - HPQ has a debt-to-equity ratio of 2.62, indicating a higher reliance on debt financing [5] - The current ratio of 0.77 suggests potential challenges in covering short-term liabilities with short-term assets [5] - Despite these challenges, HPQ's earnings yield of about 11.09% offers insight into the return on investment for shareholders [5]